patrick.net

Going back to my orginal post, my understanding is that there are people out there who took out ARM loans and when the arm expired and the house was under water they ended up with rates that were 7+ % vs 5.25% or what would be a normal current rate. If that is not true, then I do not see how allowing people to refinance would make any difference unless they would be getting better then normal rates. I do not beleive we should be giving people abnormal rates ie 4%, but I think people who ended up with above normal rates should be able to refinance to the going market rate. If the person could not afford there home at a conforming rate, then yes they should lose there home because they never should have been able to buy it in the first place. I do not want my tax dollars to pay for people who over extended themself to have luxeries that I do not have because I bought what I could afford. I do however strongly feel that people who have abnormally high interest rates should have an opertunity to obtain a conforming rate even if the home is underwater. The intent would not be to bail out greedy people as much as it would be to lend a hand to people who have been set to abnormally high interest rates and cannot do anything to fix it because they are underwater and unable to refinance.